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Commission-Initiated Review and Variance of Decision 27415-D01-2022, AUC Decision 27576-D01-2022

Link to Decision Summarized

Gas – Rates


In Decision 27415-D01-2022 (the “Original Decision”), the AUC approved an application by ATCO Gas for approval of a Rider W to collect a balance of approximately $10.677 million accumulated in the weather deferral account (“WDA”) for ATCO Gas South. In the Original Decision, the AUC accepted that ATCO Gas’s WDA calculations, including using the weighted average cost of capital for carrying costs, were consistent with the methodology and threshold requirements approved by the AUC in past WDA rate rider applications. The Original Decision did not consider the application of the interest rate prescribed by the amended Rule 023: Rules Respecting Payment of Interest (“Rule 023”). Rule 023 amendments came into effect on March 1, 2022. The AUC, therefore, initiated a proceeding to review the Original Decision.


The AUC varied the Original Decision to reflect that Rule 023 applies to the WDA effective March 1, 2022. The AUC determined that ATCO Gas did not need to recalculate and refile its Rider W application. The AUC directed ATCO Gas to reflect the impact of this variance on the balance approved for collection in the Original Decision as part of its next Rider W application. The AUC expressed its expectation that ATCO Gas use the rate prescribed in Rule 023 as part of future Rider W applications unless otherwise directed by the AUC.

Applicable Legislation

AUC Rule 023: Rules Respecting Payment of Interest

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